Sell and streamline to boost profits

Ryan Ross and Jeff Rhoades with AkzoNobel taught seminar attendees how to measure profitability, sell materials and contain costs during their presentation, “Optimizing Paint Material Profitability” on Friday, April 24 during Automechanika Chicago.

Measuring and benchmarking material profitability is the first step in better understanding profits, Ross said. He and Rhoades discussed how to calculate paint material profitability, accounting for sales and costs properly and identifying key performance indicators for paint materials.

Selling more paint materials is also a way to boost profitability, Rhoades said. It is important that shops hone their estimating skills to ensure they are getting paid for every task they perform.

Ross and Rhoades also addressed containing paint materials costs through technical standards and training, a stringent inventory management process, waste reduction and safety and mixing room efficiency.

Shops were encouraged to follow the “you have to spend money to make money” adage, but only when they were able to truly understand what they are spending and if they are, in fact, optimizing their profit on paint materials.

“Your business will benefit when you have sufficient paint material inventory to repair vehicles in a timely manner while optimizing paint material profitability,” Rhoades said.

Subscribe to ABRN and receive articles like this every month…absolutely free! Click here to subscribe.